Pension, or pension insurance, refers to a social security system in which the state legislates to compulsorily collect social insurance premiums (taxes) and form a pension fund. When workers retire, they are paid pensions to ensure their basic living needs. It is one of the most important aspects of the social security system.
- United Kingdom
The pension in the United Kingdom consists of two parts: basic pension and additional pension. All citizens who are over the statutory retirement age can get a basic pension, while additional pensions can only be obtained by citizens who pay social insurance premiums according to the prescribed amount after retirement. The additional pension is determined by the length of time the citizen pays social insurance premiums. The longer the insurance premiums are paid, the more additional pensions you will get. For those who postpone retirement (65-70 years old for men and 60-65 years old for women), they will no longer pay insurance premiums, and the employer will pay on their behalf. If the husband has retired and the wife who depends on his income is not yet of retirement age, the husband can receive a larger pension. In the United Kingdom, men who are 65 years old and women who are 60 years old can retire and are eligible for pension benefits. Civil servants can retire at the age of 60, and those who are 65 years old are forced to retire.
- Spain
Spanish law stipulates that civil servants, regardless of gender, retire at the age of 65. As long as they pay retirement funds to the National Social Security Committee, they are entitled to receive retirement benefits. The funds must be paid for more than 15 years, and those who pay funds for more than 35 years can receive full retirement benefits. Old people in Spain who receive retirement pensions are required to live in nursing homes after they turn 70. There are more than 5,000 nursing homes in Spain for the elderly to choose freely.
- Germany
Germany's pension insurance system is relatively diverse, and consists of different forms such as statutory pension insurance, corporate supplementary pension insurance, and personal voluntary insurance. In addition to personal and corporate payments, statutory pension insurance can also enjoy national financial subsidies, which account for more than one-fifth of the total. According to German law, most workers and self-employed individuals can participate in statutory pension insurance. High-income groups such as doctors, lawyers, and retail traders are deployed in the category of compulsory insurance, but they can purchase voluntary pension insurance after they reach the age of 16 and do not enjoy national financial subsidies. Civil servants, judges and other national lifelong employees have independent pension insurance systems and do not participate in statutory pension insurance. Agricultural personnel have separate and independent agricultural practitioners' pension insurance.
In Europe and the United States, the economic support for the elderly mainly comes from pensions, social insurance, personal savings and family support.
- Pensions: Europe and the United States have generally established a sound pension system to provide a stable source of income for the elderly. Taking Greece as an example, the statutory retirement age in Greece is 65 for men and 60 for women, but the actual average retirement age is lower. Greece is one of the most generous countries in the European Union in terms of pension payments. The total pension payment accounts for 11.9% of GDP, and the average pension received by Greeks is even higher than their salary when they retire.
- Social insurance: Social insurance is an important part of the pension security system in Europe and the United States. By paying social insurance premiums, the elderly can obtain certain economic support after retirement. This support usually includes pensions, medical insurance, etc.
- Personal savings: Personal savings are also an important source of economic support for the elderly. Many elderly people in Europe and the United States will actively save during their working years for use after retirement.
- Family support: Although family members in Europe and the United States have a strong sense of independence, in some cases, the family will still provide certain financial support for the elderly. This usually happens when the elderly face financial difficulties or need extra care.
